1989 (10) TMI 50

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....r section 156 of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), wherein the following question has been referred for consideration of this court: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the amount of Rs. 7,500 paid as fees to the Registrar of Companies, Jaipur, for bringing about change in the memorandum and artic....

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....s not covered by section 35D(1)(ii) of the Act and no part of this expenditure could be allowed as deduction. He disallowed the entire expenditure of Rs. 7,500. On further appeal, the Income-tax Appellate Tribunal allowed the said deduction of expenditure in the view that the said expenditure was not an expenditure which was capital in nature but was a revenue expenditure. Thereupon, the Revenue m....

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....ITR 239 (Delhi), Bombay Burmah Trading Corporation Ltd. v. CIT [1984] 145 ITR 793 (Bom) and GrozBeckert Saboo Ltd. v. CIT [1986] 160 ITR 743 (P & H). The Tribunal has placed reliance on the decision of the Allahabad High Court in CIT v. Modi Spinning and Weaving Mills Co. Ltd. [1973] 89 ITR 304 and the decision of the Bombay High Court in CIT v. Elphinstone Spinning and Weaving Mills Co. Ltd. [....

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....of the Allahabad High Court in CIT v. Modi Spinning and Weaving Mills Co. Ltd. [1973] 89 ITR 304, has held that the amount expended by a company for making alterations in its memorandum and articles of association in order to bring them into accord with changes brought about in the law relating to companies is expenditure incurred by the assessee solely and exclusively for the purpose of its busin....